US President Donald Trump indicated that trade discussions with India are still underway, even after warning of a 25 per cent tariff and a possible penalty related to Russian energy imports.
A final outcome, he said, could be known by the end of the week.
“We’re talking to India now, we’ll see what happens,” Trump told reporters, shortly after issuing a warning about potential trade penalties, including a 100 per cent surcharge for countries purchasing energy from Russia.
He claimed that India, which he described as having among the highest tariffs globally, is now showing readiness to reduce duties ‘very substantially’.
Trump, however, did not respond when questioned about the proposed penalty linked to Russian energy deals.
Instead, he shifted focus to a separate 10 per cent penalty he has suggested for members of the BRICS group.
His remarks suggest that the earlier threats may be part of a broader negotiating strategy, offering both nations room to find common ground before any formal measures are implemented.
India Responds with Firm Stand
So far, the US administration has not issued an official notice on tariffs against India, unlike with some other countries.
India, responding to the developments, issued a firm statement emphasising national interests, stating, “The government will take all steps necessary to secure our national interest.”
Officials indicated that agriculture could be a central issue in the discussions, with concerns around protecting domestic farmers and small businesses.
“The government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs (Micro, Small, and Medium Enterprises),” the Indian statement noted.
One key US demand has been greater access to Indian markets for American agricultural and dairy products, a point that has met with resistance in New Delhi, given its impact on local producers.
Though Trump and members of his administration, including Commerce Secretary Howard Lutnick, had earlier expressed confidence that India would be among the first to finalise a trade deal, the two sides have yet to reach an agreement.
India had been one of the earliest countries to open trade talks with the US on the tariff issue, and Trump has repeatedly hinted that a deal was close, including as recently as last week.
India’s Commerce Minister, Piyush Goyal, had also expressed optimism in a recent interview in London, stating that discussions were progressing well.
“I do hope we’ll be able to conclude a very consequential partnership,” Goyal asserted.
The Commerce Ministry in New Delhi confirmed ongoing dialogue, asserting, “India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months.”
PM Modi Called ‘A Friend’, But Tariffs Criticised
Speaking to the press at the White House, President Trump described Prime Minister Narendra Modi as ‘a friend of mine’, though he continued to criticise India’s tariff policies.
“It doesn’t matter too much whether we have a deal or whether we charge them a certain tariff, but you’ll know at the end of this week,” Trump remarked.
He repeated his long-standing claim that India imposes excessively high tariffs and asserted that these barriers limit US exports to the country. Some duties, he said, reach as high as 175 per cent.
When pressed again about the energy-related penalties, Trump avoided a direct answer and instead turned his attention to the BRICS bloc, a group of major emerging economies that includes India, Russia, China, Brazil, and South Africa.
“India is a member of that, if you can believe it,” Trump said, describing the group as hostile to US interests.
“It’s an attack on the dollar, and we’re not going to let anybody attack the dollar,” he declared.
“In India’s case,” he concluded, “it’s partially BRICS, and it’s partially the trade.”
In a post on Truth Social, Trump had earlier accused India of relying heavily on Russian military supplies and oil.
“They have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE,” he wrote.
Ending the post in his signature capitalised style, Trump added, “ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST.”
Also Read: Maybe They’ll Be Selling Oil To India Someday: Trump On US-Pakistan Energy Deal
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